Should I Rent a House or an Apartment?
The national progression of the American dream – you spend your youth at home, then go to college, then have your first, dingy apartment for as long as it takes for you to grow up and/or settle down to your very own house. Although, changes in lifestyle, including people living at home far longer than they used to, might challenge this narrative, it still sort of sums up the expectations of many.
This story works very well for some – even better for those living in places where housing prices are reasonable. However, for my fellow folks living on the coasts, it could be that financial responsibility dictates a different path for your life. Perhaps you’ve been in that apartment for a few years, but you still don’t want to buy a house. And yet, you want something a little more comfortable than your apartment. Maybe your income has increased, or you’ve reached a more stable part of your career trajectory, or you simply find that, during the pandemic, you have more time for house work than you used to. Maybe you’re starting to think about having a house.
Here are a few pros as for renting versus buying.
Renting is Still Less Expensive
In some places, renting an apartment might be considerably cheaper than renting a house. That’s not always the case. Often, living in the suburbs means larger apartments and condos/town homes are very similar in price to just renting a house. So you’ve decided you want more space. Do you need to buy a home? Actually, you really don’t. Renting a home is still cheaper than buying a house. Unless you are able to afford and have the desire to make a significant downpayment, your monthly renting payments will probably be significantly cheaper than your monthly mortgage payments would be. Additionally, when buying a house, it makes sense to have a significant emergency fund stored away – one equal to 6 months of your salary. This ensures that if something goes wrong in your home or anywhere else in your life, you have the money to cover it.
When renting a house, however, the landlord is responsible by law to cover things like appliances going out (if they supplied them), Air Condition problems, or the roof needing repairs.
Houses Afford More Space and Convenience
You can live in the most luxurious apartment and you will still lack some of the convenience of living in a home. It could be the homeowners are a pain, or you don’t have a garage or a washer/dryer en suite. One reason to rent a house instead of an apartment is for the convenience. Also, having more space is good even beyond the obvious need of a larger family for a larger home. Having more space is great for those who enjoy entertaining, decorating, or spending more time in the kitchen, as well as for those who work from home!
More Houses than Apartments on the Market
Apartment living is all the rage in some cities. However, in many more suburban feeling cities, it might just make more sense to rent a house. If most people live in houses, chances are it’s not more expensive to rent a house than an apartment. What’s more, in suburban settings, life happens around the house, not so much in the parks or the cafes. So you are actually getting more out of where you live by jumping on the housing bandwagon.
So what’s the right fit for you? House, or apartment?
